You receive a monthly rent tax deduction every year at the end of the year, but if you miss that period, there is an easy way to personally receive a refund. We will tell you how and who can receive a refund of up to 7.5 million won using the Home Tax and Zari Talk apps. If you have paid the burdensome monthly rent that is rising every year, do not miss out and make sure to get your money back.
Monthly rent refund system Jaritalk/Hometax
Take advantage of the monthly rent refund system
Income deduction VS tax deduction
The ways to receive a monthly rent refund are basically divided into income deduction and tax deduction.
Income deduction refers to starting the year-end tax settlement with a lower income bracket by subtracting from the total income earned during the year, and tax deduction refers to deducting from the tax amount once the amount of tax to be paid is determined after the year-end tax settlement.
The income deduction is mainly advantageous to those with high income, and the tax credit is structured to be advantageous to those with low income. In particular, the maximum monthly rent tax credit rate is raised from 12% in 2022 to 17% in 23, so the tax credit It is much more advantageous to receive . (Maximum receipt: 1.275 million won)
If you pay 500,000 won in monthly rent, you will pay 6 million won in monthly rent in one year.
Then, if you receive a 17% tax credit, you can receive a refund of 6 million won x 17% = 1.02 million won, which is the same as receiving two months’ rent for free.
It would be nice to receive a refund for all the money paid, but there is a condition.
Monthly rent refund
Monthly rent refund system
Who is eligible for a monthly rent refund?
First of all, just because you are paying rent does not mean that you will receive back 17% (as of 2023) of the money you paid.
A monthly rent refund is a part of the year-end tax settlement, and when you pay taxes (income tax) to the country, the monthly rent is deducted from the amount of tax you paid. So, if you do not pay income tax, you cannot receive a refund of the monthly rent refund, and if you paid 1 million won in income tax over the course of a year, you can receive a refund within the limit of 1 million won. If the monthly rent refund amount is up to 7.5 million won, you must have paid more than 7.5 million won in income tax in one year to receive the maximum refund.
Is it possible to get a refund on monthly rent even if I am currently working?
Even if you are currently unemployed, there are cases where you can get your money back. Let’s take a look at the example below.
Example) As of 2023, I was unemployed and not working, but I worked at the company for 5 months from April to August in 2022.
Will I get any refund?
Years worked Period during which monthly rent is tax deductible Months
Refunds are possible only for the monthly rent paid for 5 months from April to August 2022, April, May, June, July, and August.
Even if you are currently unemployed, monthly rent refunds are retroactive for 5 years, so if you have worked for a certain amount of time over the past 5 years, you can receive a partial refund.
Basically, what those with income can receive is the monthly rent refund. Please check the criteria below.
Monthly rent refund deduction requirements (tax deduction)
1. Head of household without housing
2. Employees with a total salary of 70 million won or less or a comprehensive income of 60 million won or less
(Comprehensive income: The sum of all income earned during the year, including employment + business + other income)
3. Rental housing with an exclusive area of 85㎡ or less or a standard market price of KRW 300 million or less (including gosiwons, residential officetels, studio apartments, etc.)
4. The address on the rental agreement and your registered address must match (moving-in report is required)
Monthly rent refund
Monthly rent refund
Monthly rent tax deduction limit
You can receive a monthly rent refund of up to 7.5 million won.
If your total salary is less than 70 million won, you can get a 15% refund of the monthly rent paid, and if your total salary is less than 55 million won, you can get a 17% deduction. (As of 2023)
Required documents
1. Copy of resident registration (abstract copy)
2. Copy of rental agreement
3. Documents proving monthly rent payment (account transfer details, etc.)
Apply for a monthly rent refund
You can apply for monthly rent tax deductions using Home Tax and ZariTalk.
First, let’s look at how to apply through Hometax.
At Hometax, you must first apply for a cash receipt for housing rent.
1. After logging in to Hometax, click Housing Rent (Monthly Rent) in Consultation/Report.
2. Click Apply for issuance of cash receipt for housing rent and enter the information.
3. Go back to the Hometax first page menu, Report/Payment, and click Comprehensive Income Tax.
4. Just click on the correction request in the earned income report and enter the information. (You do not need to enter the last digit of the landlord’s resident registration number.)
The advantage of applying directly through Hometax is that you do not have to contact the landlord separately. However, it can be cumbersome as you have to enter various information yourself.
If you would like to receive all 5 years’ worth, please fill out number 5 for each year.
Apply through JariTalk
If you find it cumbersome to enter various information in Hometax, you can receive a much simpler monthly rent refund using an app called Jaritalk.
This is how to apply for a monthly rent refund using JariTalk.
1. Select a tenant in the app.
JariTalk screen
2. Enter it in the rental type field.
Jari Talk refund screen
3. After confirming the amount, you can easily receive a refund by entering the building number, contract start date and end date, and mobile phone number.
However, for this easy application, you must pay a certain fee and the landlord will be contacted separately.
Of course, contacting the homeowner will not cause any damage.
When applying, you must provide the three documents required for tax deduction. (Copy of resident registration, rental agreement, payment proof documents such as account transfer details)
Concluding the article
Jari Talk is a similar app to Samjjeomsam. You can easily get a refund, but please note that you will have to pay a fee. In my personal opinion, it is not difficult to apply through Hometax, so I recommend saving on fees and receiving more refunds.
Now, let’s find out how to get a monthly rent refund.